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QUESTION 9 10 points Suppose you are given the following information stock price - 26. strike price 25, 1266, 0.756, n 2 time stepsl. 3.00%

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QUESTION 9 10 points Suppose you are given the following information stock price - 26. strike price 25, 1266, 0.756, n 2 time stepsl. 3.00% per period), and pays $2 dividend at the end of the first period. Suppose the dividend goes down to $1, then the early exercise premium of the above American call option will be O higher lower the same O cannot be determined 10 points Save QUESTION 10 price 25, 1.0, 0.75, i l -3.00 per period and se the form decides to pay a $1 dividend. What will happen to the early Suppose you are given the following information stock price = 20 pays NO dividend at the end of the first period. However, now u premium of the above American call option It will be higher It will be lower It will stay the same Cannot be determined O

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